3G: Guarantee schemes, GDP growth, good rain put state in better shape, but infra hit

The severe drought in 2023, global economic slowdown and post-Covid crisis over the last few years had slowed down the economy in Karnataka.

- ASHWINI M SRIPAD

Now, good rain, state-sponsored guarantee schemes and growing Gross Domestic Product (GDP) are pushing the state to score better on the economic front.

But as the state is spending massive amounts on implementing guarantee schemes, infrastructure development has taken a hit.

Just a few weeks ago, the Chief Minister's Office released a statement that the state continues to drive India's economic progress, registering a robust GSDP growth of 10.2% for 2023-24, significantly surpassing the national average of 8.2%, according to data from the Ministry of Statistics and Programme Implementation (MoSPI).

"The state achieved this feat despite severe challenges, including the worst drought in a decade and a slowdown in global IT markets," it stated.

Breaking down the data, economists said buying power has been increasing among the upper class in urban areas, but not so with the lower middle-class.